Metal stocks rally as China considers $220 billion stimulus plan

Shares of metal companies rallied on Thursday following reports that China was weighing a special bond of about $220 billion as a fiscal stimulus measure. 

The move was expected to bolster infrastructure spending in the world’s second-largest economy, where stringent Covid-19 lockdowns have led to a slump in demand. 

The BSE Metal index finished 4.5 per cent higher. Vedanta and Hindalco gained over 6 per cent each, while Tata Steel added 5 per cent. The revival in China is key for the improvement in prospects of global metal and commodity companies, say analysts.